Learning Objectives 17/03/2016. Arguments for and Against Measuring Effectiveness. Chapter 18 Measuring the Effectiveness of the Promotional Program

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1 Chapter 18 Measuring the Effectiveness of the Promotional Program Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives To understand reasons for measuring promotional program effectiveness To know the various measures used in assessing promotional program effectiveness To understand the requirements of proper effectiveness research To evaluate alternative methods for measuring promotional program effectiveness 18-2 Arguments for and Against Measuring Effectiveness Reasons to measure effectiveness Reasons effectiveness measures are not taken Avoid costly mistakes Evaluate alternative strategies Increased advertising efficiency Determine if objectives are achieved Costs involved Research problems Disagreement on what to test Objections of creative department Lack of time

2 What to Test Source factors Message variables Media strategies Vehicle option source effect: Differential impact of an advertising exposure on the same audience depending on the media option used Budgeting decisions 18-4 Figure Classification of Testing Methods 18-5 Where to Test Laboratory tests: People are brought to a particular location where they are shown ads and/or commercials Testing bias: People may scrutinize the ads much more closely than they would at home Field tests: Tests under natural viewing situations Carried out with the realism of noise, distractions, and the comforts of home

3 How to Test Positioning Advertising Copy Testing (PACT): Improves the research used in preparing and testing ads by: Providing a better creative product for clients Controlling the cost of TV commercials 18-7 Figure Positioning Advertising Copy Testing (PACT) 18-8 Testing Process Concept generation and testing Rough art, copy, and commercial testing Pretesting of finished ads Market testing of ads

4 Figure Concept Testing Figure Weaknesses Associated with Focus Group Research Figure Rough Testing Terminology

5 Types of Rough Art, Copy, and Commercial Tests Comprehension and reaction tests: Assess the reaction an ad generates to ensure that it is not offensive Consumer juries: Use consumers representative of the target market to evaluate the probable success of an ad Figure Consumer Juries Limitations of the Consumer Juries Method Consumer may become a self-appointed expert Number of ads that can be evaluated is limited Halo effect: Overall rating is influenced by the judgment on one or few characteristics of the ad Preferences for types of advertising may overshadow objectivity

6 Figure Gallup & Robinson s Impact System Portfolio Tests Expose a group of respondents to a portfolio consisting of control and test ads Limitations Factors other than advertising creativity and/or presentation may affect recall Ability to recognize the ad when shown may be a better measure than recall Readability Tests Communications efficiency of the copy in a print ad is tested without reader interviews Flesch formula: Assesses readability of a copy by determining the average number of syllables per 100 words Limitations Copy may become too mechanical Direct input from receiver is not available

7 Figure Ipsos ASI s Next* Connect New Print Pretesting Measures PreTesting Groups People Reader methodology Provides mocked-up magazines to consumers and measures their responsiveness to each ad Uses hidden cameras to record behavior Link Uses a comprehensive set of diagnostic questions to evoke viewer reactions to the ads Pretesting Finished Broadcast Ads Theater testing: Participants are invited to view pilots of proposed TV programs Measure brand preference changes Advantages Established norms indicate how an ad will fare against others tested in the same product class Brand preference measure is supported by actual sales results

8 Pretesting Finished Broadcast Ads Disadvantages Environment is artificial Contrived measure of brand preference change is easily recognizable Group effect may influence a viewer s reaction On-air test: Commercials are inserted into actual TV programs in certain test markets Recall: Number of persons able to recall the ad and/or its message Physiological Measures Indicate the receiver s involuntary response to the ad Pupil dilation Pupillometrics: Measures dilation and constriction of the pupils in response to stimuli Galvanic skin response (GSR) Electrodermal response (EDR): Measures the skin s resistance or conductance to a small amount of current Figure Eye Movement Research

9 Physiological Measures Brain waves Electroencephalographic (EEG): Determine electrical frequencies in brain Alpha activity: Degree of brain activation Hemispheric lateralization: Distinguishes between alpha activity in the left and right sides of the brain Brain scan imaging - Examine physiological reactions to ads and brands Posttests of Print Ads Inquiry tests: Measure advertising effectiveness on the basis of inquiries generated from ads Methods of measuring effectiveness Running the ad in successive issues of the same medium Spilt-run tests: Variations of an ad appear in different copies of the same print medium Running the same ad in different media Posttests of Print Ads Advantages of inquiry tests Implementation is inexpensive Provide some feedback about the general effectiveness of an ad or medium used Disadvantages of inquiry tests Inquiries may not be a true measure of the attentiongetting or informationproviding aspects of an ad Ineffective for comparing different versions or specific creative aspects of an ad

10 Figure The GfK Starch Ad Readership Report Figure Gallup & Robinson Magazine Impact Research Service (MIRS) Posttests of Print Ads Advantage of recall tests Ability to assess an ad s impact on memory Disadvantage of recall tests Reader s degree of involvement with the product and/or the appeals and visuals may lead to higher-thanaccurate recall scores

11 Posttests of Broadcast Commercials Advantages of day-after recall tests Disadvantages of day-after recall tests Natural setting provides a more realistic response profile Provide norms that allow advertisers to compare how well their ads are performing Persuasive and diagnostics measures are also available Have limited samples, high costs, and security issues Favor unemotional appeals Program content may influence recall Respondents are aware of the test and will be more attentive Recall is not a measure of acceptance or predictive of sales Posttests of Broadcast Commercials Persuasive Measures Evaluates a commercial s persuasive effectiveness Diagnostics Garner viewers evaluations of the ads How clearly the creative idea is understood How well the proposition is communicated Comprehensive measures Different measures are obtained through one testing program Posttests of Broadcast Commercials Test marketing - Measure advertising effects in specific test markets before releasing them nationally Advantage - Realism and a high degree of control can be attained Disadvantages Time consuming and expensive Competitors may discover and intervene in the process

12 Posttests of Broadcast Commercials Single-source tracking methods: Track consumer behavior from the television set to the supermarket Advantages Track effects of increased budgets, different versions of ad copy, and effects on sales Offer control Disadvantage Data are highly complicated and collecting them incurs a high cost Posttests of Broadcast Commercials Tracking studies: Measure the effects of advertising toward the ad and/or brand and purchase intentions Standards - Awareness, recall, interest, and attitudes Advantage - Can be tailored to each specific campaign and/or situation Factors That Make or Break Tracking Studies Properly defined objectives Alignment with sales objectives Properly designed measures Consistency Random samples Continuous interviewing Evaluate measures related to behavior Critical evaluative questions asked early to eliminate bias

13 Factors That Make or Break Tracking Studies Measurement of competitors performance Skepticism about questions asking where the ad was seen Building of news value into the study Moving averages spot long-term trends and avoid seasonality Data reported in terms of relationships Integration of key marketplace events with tracking results Problems with Current Research Methods Accomplishing some factors important to good copy testing require more effort Most current methods do little more than provide recall scores Lab measures - Artificial and vulnerable to testing effects Field measures - Result in a loss of control Essentials of Effective Testing Establish communications objectives Use a consumer response model Use both pretests and posttests Use multiple measures Understand and implement proper research

14 Measuring the Effectiveness of Sales Promotions Calculating breakeven rate by dividing sampling investment by user profit Using pretests with effects measured through scanner data Using awareness tracking studies Tracking sales during promotional and nonpromotional periods Placing sensors in the store to track customers and gauge traffic patterns Measuring the Effectiveness of Nontraditional Media Shopping cart signage Much less effective than claimed Ski resort-based media Measures are combined with sales tracking data to evaluate its effectiveness In-store radio and television Software has been introduced to measure the effectiveness Other media Resources are available to measure impact of IMC elements Measuring the Effectiveness of Sponsorships Exposure methods Monitor the quantity and nature of the media coverage obtained for the sponsored event Estimate direct and indirect audiences Tracking measures Evaluate the awareness, familiarity, and preferences produced by sponsorship based on surveys

15 Figure Measuring Effectiveness, Not Only Efficiency